You've seen the sexed up trailer showing what games based on Epic's Unreal Engine will look like in the coming generation. Now join Kotaku and Gizmodo for the world's first peek at the tools and technology that will be used to create some of the biggest games on every platform from PC to iOS in coming years.
While I'm not trying to demean this demonstration, I think all the scenes look fantastic, I think we're starting to see a leveling-off as far as visual integrity is concerned. Not that I'm saying next-gen games won't look fantastic, because I'm sure they will, it's just that the difference between this generation and the next won't be anything like the jump from PS1 to PS2.
For me, the generational divide between the PS1 and PS2 was amazing. Subsequent jumps from one generation to the next have only been adding icing on the cake. The invention of the first cell-phone was amazing; since then, they've only become smaller, faster, and more suited to different things.
The new engines seem analogous to this for me. They're not inventing the wheel, just making it more round.